Competitor price monitoring plays a crucial role for the retailers more than ever. There are millions of e-commerce sites on the web. With such fierce competition and ever-changing customer preferences and trends, the scope for error in pricing is less as compared to the past decade. It has become all the more important to monitor competitor prices as consumers can easily look for alternatives within the click of a button.
Successful retailers and e-commerce portals are the ones that can leverage on cutting-edge technology for making informed decisions and efficient pricing decisions based on real-time data obtained via competitor price monitoring software.
Competitor price monitoring is a long-term process of analyzing the key competitor’s prices constantly to develop an overall picture of their pricing patterns. Over time, it helps the teams to anticipate and predict the changes more accurately. After collecting and compiling the daily data with the help of eCommerce competitor price monitoring, a business can get a glimpse into the historic pricing data along with getting notified for changes such as discounting. It enables them to make changes swiftly in their own pricing strategy.
How to Monitor Your Competitor Price?
Here’s a look at the steps that will help you monitor competitor prices:
1. Set the Market Position
The first step when monitoring the competitor’s price is to set the market position. It helps in making sense of the pricing data that a business will collect. It can be unsettling to find out that every competitor is selling product at a price lower than you. When there is no defined market position for a brand, a business might stress and put all its products at a discount.
Thus, it is essential to determine your brand’s value proposition. Setting the market position will place the brand at a particular point in terms of quality, price, and exclusivity.
2. Study your Competitors
The next step while monitoring competitors’ prices is creating a strategy for identifying and studying the competition in the market. There are 4 different types of competitors such as similarly positioned, differently positioned, important competitors, and foils of the brand.
When you have a list for different types of competitors, it can help in fetching actionable data. Grouping the competitors into a segment on the basis of similarities will help in finding out patterns for each segment. Studying the competition at a minute level offers insight into competitive behavior in any market.
3. Identify Competitor Sites and Products to Monitor
To collect the pricing data, one must choose a tool to monitor competitors’ prices as it automates the process. Huge retail companies such as Amazon and Walmart have sophisticated algorithms for price matching with their commitment to offer low prices. After having a price monitoring tool in place, the next step is to identify the competitor websites and choose the product for monitoring.
The tool to monitor competitor prices automatically collects the pricing data along with other data that a business wishes to collect such as product images, product descriptions, reviews, and shipping fees.
4. Test Pricing Data for Relevant Products
A business must plan to test the pricing data collected from competitor price monitoring. Target the most important products and after completing the initial price monitoring set-up, collect the data for 2-3 days or a week. Have a look at the prices charged by the competitors for similar products as yours.
Initial data will help in verifying if your strategy is offering the right data which you can use for analytics and decision making. If a product seems missing, add it to the set. If the prices seem to be redundant, check the settings of the pricing software. Once the results are satisfactory, apply the tool to monitor competitor prices for the entire product catalog.
5. Adjust the Strategy
Once you test the competitor’s price monitoring strategy, there might be a need to adjust the strategy. Some products might go out of the stock at competitor’s website or they might make changes to their site. In such cases, a business needs to evaluate the exact reason for missing data. It will help in keeping the price monitoring data relevant and pricing your own product accordingly.
Best Price Monitoring Strategy
Automation is the best policy when it comes to the best price monitoring strategy. It helps a business monitor several competitor prices in real time. It helps in creating an appropriate pricing strategy and increases the sales conversion rate with the help of that information.
There are several benefits of price monitoring tools for a business:
Stay Ahead: Price monitoring tools can help a business stay competitive in the market. They can track the changes in the competitor prices to adjust their own prices in real time so that what you offer remains attractive to the buyers.
Understanding Market Trends: Monitoring software can help a business to sync its pricing strategies depending on the market trends. A business doesn’t need to rely anymore on the guesswork as they can make decisions based on the data for maximizing profitability.
Increase in Profitability: Price monitoring tools can help in improving the profit margins. By continuously monitoring and analyzing the pricing strategies of the competitors, a business can figure out opportunities for increasing the prices without affecting the sales volume. It can have a positive impact on profitability over the time.
Competitor monitoring software helps identify the latest trends in the industry. Staying ahead of the trends can offer a business a competitive advantage. It always helps to be a trendsetter rather than being a follower so that you can differentiate your brand.
Automated Operations: With price monitoring tools, you can automate the entire price adjustment process. The software streamlines the entire process which helps in saving time and manual efforts. Set predefined rules for price adjustment and you are good to go.
Why Should Go with Price Tracking?
For Dynamic Pricing Insights: Dynamic pricing needs every online business to be on its toes. And keeping up with the trends becomes a task. WebDataGuru’s tools help the companies in striving and powering through the turmoil of the changes in the market. You get real-time data on the competition and their price trends. This in turn helps you optimize the business operations.
Better Market Positioning: Now, by understanding how your prices compare to those of competitors, you can easily and strategically position your products or services in the market to attract customers while maintaining profitability. Market position gains more traction and better top-of-mind recall as there are millions of businesses providing the same kind of products in the same price range. So, standing out will make all the difference and also reaching there first. And you guessed it right, price monitoring helps you do the same in the most efficient manner.
Enhanced Sales Performance: Understanding how your prices stack up against competitors helps you create compelling value propositions, potentially boosting your sales performance. In a rapidly changing market, competitive price monitoring fosters business agility, allowing you to swiftly adapt to evolving industry dynamics and maintain a competitive edge.
For businesses that sell products in a competitive market, it is crucial to constantly competitor price monitor to tweak their own pricing strategy accordingly. It helps in retaining the customers and improving the sales and revenue numbers. The aim is to review the prices in real-time and make necessary changes.
Master Your Market with Precise Price Monitoring
Now is the time to take control of your business destiny! And you need to elevate your strategy with our competitive price monitoring tools which are at your disposal. Stay agile, outshine competitors, and boost your profits. Ready to revolutionize your pricing game with WebDataGuru?
Start now! Your success journey begins with a click. Book a demo today!